Singapore: Singapore Depository Receipts (SDRs) are an investment product that has been available for trading since last year for local investors wishing to diversify into companies listed on certain foreign stock markets.
In May 2023, the first three SDRs were listed on the Singapore Exchange (SGX). Because they are linked to well-known Thai firms, like Airports of Thailand, investors who want to try their hand at other Southeast Asian markets can do so directly through the SGX.
This year saw the addition of five more Thai-listed companies in May and five Hong Kong-listed companies in October. These latter include the Chinese electric vehicle manufacturer BYD and the digital behemoths Tencent and Alibaba.
Like any stock listed on the SGX, SDRs are easily traded, and some even have dividends that are paid out in Singapore dollars. However, they should not be mistaken with actually owning the equities of these foreign-listed businesses.
Additionally, overseas companies like Thai Beverage and Hong Kong-based Hongkong Land, whose shares are directly listed on the SGX, have long been accessible to investors in this area.
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